|Bid||100.02 x 1200|
|Ask||102.04 x 1800|
|Day's Range||97.14 - 100.38|
|52 Week Range||89.89 - 125.09|
|Beta (3Y Monthly)||1.39|
|PE Ratio (TTM)||19.08|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||3.84 (3.95%)|
|1y Target Est||115.55|
Fedex cuts prices to attract online retailers after ending its air shipping contract with Amazon, according to the Wall Street Journal. Yahoo Finance's Seana Smith and Jared Blikre discuss.
A growing number of large U.S. companies are expressing concerns over falling profit margins and that could spell trouble for stock-market valuations.
(Bloomberg) -- FedEx Corp. predicted a “transition year’’ for fiscal 2020, with an improving outlook for e-commerce profits tempered by concerns that international trade tensions will worsen.Revenue per package in the ground-delivery operation rose 2.2% in the quarter ending May 31 as volume growth accelerated to 8.8%, FedEx said in a statement late Tuesday. That signaled progress in the courier’s push to extract higher profits from the surge in home deliveries driven by online shopping.FedEx is stepping up efforts to become the low-cost provider of e-commerce deliveries, paring jobs and partnering with companies such as Dollar General Corp. to add pickup and drop-off sites. But FedEx is struggling to shore up its Express air-delivery division -- the unit most threatened by escalating trade tensions, especially between the U.S. and China.“The utilization of the ground network and the opportunity they feel that they have with e-commerce to significantly grow is the positive that people are taking out of this,” said Trip Miller, managing partner at Gullane Capital Partners, which owns FedEx shares. “But certainly, we didn’t hear anything positive about China. We didn’t hear anything positive about Europe.”The shares fell 1.1% to $154.21 at 9:45 a.m. Wednesday in New York. The shares had dropped 3.3% this year through Tuesday, while rival United Parcel Service Inc. was little changed and a Standard & Poor’s index of industrial companies advanced 19%.Weak ForecastFedEx has been struggling to keep up with Wall Street’s expectations as the company pours money into making deliveries more efficient and struggles with a cloudy trade outlook.Adjusted earnings for the current fiscal year will drop by “a mid-single-digit percentage” from $15.52 a share in the year just ended, FedEx said in the statement. Analysts were expecting $16.15 in fiscal 2020 -- an estimate that had already been whittled down from $20 about six months ago.“Our fiscal 2020 performance is being negatively affected by continued weakness in global trade and industrial production, especially at FedEx Express,” said Chief Financial Officer Alan Graf.That impact extended a longstanding sense of frustration at FedEx with President Donald Trump’s willingness to stoke trade tensions, said Chief Executive Officer Fred Smith.“Clearly, we’ve been very disappointed over the last few years with the assumptions that we made on the growth in international trade, particularly with the Trump administration,” Smith said on a conference call with analysts and investors. “We have become a protectionist country.”FedEx fired a new weapon in the simmering U.S.-China trade war this week, suing the Trump administration to block enforcement of trade restrictions that have placed the company in Beijing’s crosshairs.The federal lawsuit came after the White House barred U.S. companies from selling technology to Chinese telecommunications giant Huawei Technologies Co.While trying to comply, FedEx employees mistakenly flagged packages involving Huawei. Now China is considering adding the courier to a list of so-called unreliable entities.Understanding China’s ‘Unreliable Entities’ Blacklist: QuickTakeE-Commerce ChallengeCloser to home, the next 12 months will be pivotal for FedEx as it seeks to stem the decline in profit margins at the company’s ground unit. Recent moves include extending deliveries to seven days a week and reducing reliance on the U.S. Postal Service.FedEx’s Express business cut ties with Amazon.com Inc. as the largest online retailer muscles into the delivery business. FedEx said it would focus on more profitable customers.The challenge for FedEx -- and UPS -- is that deliveries to homes, where drivers often handle a single package at each stop, tend to be less profitable than business deliveries, where they might pick up or drop off several parcels.“Fiscal year 2020 is in many ways a transition year for FedEx as we continue to reinvigorate our business to capitalize on e-commerce growth and execute significant initiatives to reduce our cost to serve in the U.S.,” said Chief Operating Officer Rajesh Subramaniam.Those efforts are softening the blow from the weak profit forecast for fiscal 2020 -- but the pressure will remain on FedEx to show sustained gains from the rise of online shopping.“FedEx is not out of the woods,” Cowen analyst Helane Becker said in a note to investors, “but base expectations are lower and if there is any shift towards a more optimistic macro environment, we expect shares to move higher from current levels.”(Updates stock action in fifth paragraph.)\--With assistance from Karen Lin.To contact the reporter on this story: Thomas Black in Dallas at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, Tony Robinson, Cécile DauratFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
UPS (UPS) today announced the official opening of its new 893,000 square foot Plainfield, Indiana package sortation and distribution center. The Indianapolis-area facility initially started processing packages in 2017 during the busy holiday season while construction of the new “super hub” was still underway. Now operating at full capacity, customers are receiving all of the benefits from the facility’s increased speed, efficiency and dynamic routing technology.
FedEx's announcement of its suit on Monday came shortly after the U.S. parcel delivery firm reignited Chinese ire over its business practices. Chinese telecoms company Huawei Technologies Co in May was added to a blacklist of people and companies the U.S. government said posed a security risk, barring it from buying, without special approval, U.S. technology upon which it was heavily reliant. In its lawsuit, FedEx said it should not be expected to enforce the export ban, and could not reasonably be held liable for shipping products that it did not know about.
United Parcel Service Inc said on Tuesday it would not join a lawsuit FedEx Corp filed against the U.S. government that argues FedEx should not be held liable if it inadvertently shipped products in violation of an export ban. FedEx's announcement of its suit on Monday came shortly after the U.S. parcel delivery firm reignited Chinese ire over its business practices. Chinese telecoms company Huawei Technologies Co in May was added to a blacklist of people and companies the U.S. government said posed a security risk, barring it from buying, without special approval, U.S. technology upon which it was heavily reliant.
In the U.S., there are nearly 12 million women-owned small businesses, yet they comprise only 12 percent of U.S. exporters, according to UPS Inc. (NYSE: UPS). To try and change that and open up more opportunities for women, the company is launching the Women Exporters Program workshops. "As a leading global logistics company, we have deep insights into how businesses move across borders and grow," said Eduardo Martinez, UPS chief diversity and inclusion officer and president of The UPS Foundation.
This week we're coming at at you with one action packed episode where we talk Oregon Climate Bill drama, Iran/US conflict costs airlines billions, Uber Technologies Inc (NYSE: UBER ), Amazon.com, Inc. ...
Shares of FedEx Corp. slumped 2.6% in morning trading Tuesday, enough to pace the Dow Jones Transportation Average's decliners, ahead of the package delivery giant's fiscal fourth-quarter results due out after the close. Late Monday, the company filed suit against the U.S. Department of Commerce, saying the Export Administration Regulations (EAR) against FedEx violates common carriers' rights, as it holds FedEx liable for shipments that violate the EAR without requiring evidence that FedEx had any knowledge of violations. FedEx said that while it supports the objective of the EAR, it places an unreasonable burden to police the millions of shipments made every day. "FedEx is a transportation company, not a law enforcement agency," the company said in a statement. FedEx's stock, which has now shed 7.0% amid a 3-session losing streak, has dropped 2.9% year to date, while the Dow transports has gained 10.4% and the Dow Jones Industrial Average has rallied 14.3%.
UPS brings the international program to the U.S., hosts workshops and mentoring sessions at WBENC National Conference. BALTIMORE, June 25, 2019 (GLOBE NEWSWIRE) -- As part of its continuing efforts to create an inclusive business environment and growth opportunities for women, UPS (UPS) has announced the launch of the Women Exporters Program workshops for U.S. businesses. The program will help women business owners and leaders to gain access to the vast global marketplace, comprising 95% of the world’s buyers.
FDX is expected to report $17.8 billion in revenue with EPS estimates of $4.81, representing 3% sales growth but an earnings per share decrease of 18.6% year-over-year.
(Bloomberg Opinion) -- FedEx Corp. may finally be waking up to the threat Amazon.com Inc. poses to its business model.The logistics company is offering big discounts to help fill the planes in its Express delivery network with more e-commerce shipments, according to the Wall Street Journal, which cited people familiar with the matter. The deals are being used to woo customers away from rival United Parcel Service Inc., or to convince them to switch from FedEx’s cheaper ground offerings, the newspaper said, citing people familiar with the matter. For some customers, shipping goods via FedEx’s two-day air service may now cost about the same as shipping them through the ground division.(1)A FedEx spokeswoman told the Wall Street Journal that the company hasn't changed its pricing strategy, adding that the two-day Express service “has been very successful and continues to deliver tremendous value to small and medium businesses competing in the e-commerce market.” Reports of the discounts come just weeks after FedEx said its domestic Express air-delivery unit was dropping Amazon as a customer to focus on "serving the broader e-commerce market." FedEx dropped Amazon as a customer for its Express air-delivery unit to focus on “serving the broader e-commerce market.” The charitable interpretation of that move is that FedEx had found a bit of backbone and was holding a firmer line on pricing with Amazon in an effort to bolster its profit margins. The other possibility is that FedEx recognized that Amazon’s efforts to bring more of its logistics operations in house were real, and that it may want to start the process of breaking up with Amazon before Amazon decides to break up with it. While FedEx CEO Fred Smith has repeatedly painted any notion of Amazon disrupting the logistics industry as “fantastical,” his actions increasingly suggest otherwise. The share of capacity devoted to the time-sensitive legal documents and medical supplies that the FedEx Express network was originally built for will likely continue to shrink. But it’s uneconomical for the division’s fleet – which numbered 670 leased and owned planes at the end of 2018 – to fly partially full or not at all. Meanwhile, FedEx expects U.S. e-commerce demand to grow to 100 million packages per day by 2026. It’s been adamant that Amazon only directly accounts for a small percentage of its overall sales. But Amazon has forever changed the world’s expectations around shopping and delivery. So whether or not its own sales are in the mix, FedEx will be forced to drink more deeply from the firehose of e-commerce shipments to keep its network humming along. And that will come at a cost to margins.FedEx’s decision to prioritize shipments from the likes of Walmart Inc., Target Corp. and Walgreens Boots Alliance Inc. gave some analysts hope that it would deliver a greater share of packages to higher-paying business customers and add more density to its delivery routes. But there’s some debate as to whether the Express air-delivery unit as currently constituted still makes sense. Amazon relies on a network of fulfillment and sorting centers close to metropolitan areas to rapidly complete and ship orders, a model that many rival retailers are mimicking in some shape or form as they try to stay competitive. If you’re only going to deliver a package 25 or 50 miles, you’re not going to use a plane to do that. Indeed, when FedEx’s decision to drop Amazon as a U.S. Express customer was first announced, Seaport Global Holdings analyst Kevin Sterling wondered to Bloomberg News whether it was a precursor to the Express unit eventually fading out.Planes still have a role to play: Amazon last week announced an agreement to lease 15 additional Boeing Co. 737-800 converted freighters from General Electric Co.’s jet-lessor arm, adding to an existing agreement for five planes. But FedEx’s reported need to offer discounts to keep the planes it has full calls into question the company’s decision to devote a significant amount of its capital expenditure budget to refreshing its airplane fleet. Management has been clear it’s not expanding capacity at the Express unit, but rather replacing its planes with more efficient options to improve productivity and costs. Downsizing the fleet and reallocating those resources could be a smarter move. The reported pricing cuts – coupled with FedEx’s recently announced plan to offer delivery seven days a week by 2020 and add a fleet of flexible, part-time drivers – reinforce a point both I and my colleague Shira Ovide have long argued: Amazon doesn’t need to steal customers away from FedEx and UPS en masse to be a threat. It’s already forcing both companies to rethink the way they operate. The revenue lost from removing Amazon as an Express customer is relatively minor, but the world the e-commerce giant has created isn’t a hospitable one for the package-delivery incumbents’ profit margins and capital-spending budgets. (1) News of the discounts weighed on shares Monday, as did a separate shipping issue: FedExhad to issue a second apology to Huawei Technologies over the misrouting of packages, and some reports indicate China is contemplating black-listing it.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Shares of FedEx Corp. fell 1.3% in premarket trading Monday, after The Wall Street Journal reported that the package delivery giant has been offering big discounts in an effort to attract online merchants to its Express delivery service. The report comes after FedEx's announcement earlier this month that Express ended its contract with Amazon.com Inc. , as FedEx tries to win customers from rival United Parcel Service Inc. and ahead of FedEx earnings due out on Tuesday. The WSJ report, citing people familiar with the matter, said among FedEx price cuts was to offer guaranteed two-day air service for the same price as shipping items through its ground division. FedEx's stock has dropped 32% over the past 12 months through Friday, while rival UPS shares have slipped 10.1% and the Dow Jones Industrial Average has rallied 8.7%.
In the latest trading session, United Parcel Service (UPS) closed at $102.17, marking a -1.19% move from the previous day.
The wishlist is long, with Atlanta already securing the NCAA Final Four for 2020 and Major League Baseball’s All-Star Game in 2021. But all these events come at a cost.
For all its symbolism, FedEx Corp.'s (NYSE: FDX) June 7 announcement that it would not renew its U.S. air delivery contract with Amazon.com, Inc. (NASDAQ: AMZN) was relatively small potatoes. The decision only affects $150 to $200 million in annual revenue for Memphis-based FedEx, whose fiscal year 2019 top-line will approach, if not exceed, $70 billion. The real story, instead, may percolate some 400 miles to the southeast in Atlanta, home of UPS Inc. (NYSE: UPS).
Global shipping and logistics giant UPS Inc (NYSE: UPS) said it collaborates directly with its customers to reduce wait times at docks to increase efficiency and productivity and reduce detention time for its drivers. "The use of technology and visibility solutions drives collaboration between UPS and its customers," said Chris Yohn, employee communications manager of UPS Freight. UPS, headquartered in Atlanta, Georgia, ranked ninth of 25 winners in FreightWaves' first-ever Shipper of Choice Awards.
Entry-level driver training regulations going into force in 2020 will make it difficult for UPS to keep up with new driver demand, according to company documents. UPS Inc (NYSE: UPS), one of the nation's largest less-than-truckload (LTL) freight carriers with over 20,000 long-haul trucks, has applied for an exemption from two requirements of the entry-level driver training (ELDT) final rule being administered by the Federal Motor Carrier Safety Administration (FMCSA). The ELDT rule, which goes into effect on February 7, 2020, requires behind-the-wheel and theory driver training instructors have two years' experience and have held a commercial driver's license (CDL) for two years.
Seattle-based Amazon.com Inc. announced Tuesday that it would lease an additional 15 Boeing 737-800 cargo aircraft to add to its cargo fleet. The new aircraft will fly in the U.S. out of the more than 20 air gateways in the Amazon Air network. “These new aircraft create additional capacity for Amazon Air, building on the investment in our Prime Free One-Day program,” Dave Clark, senior vice president of worldwide operations at Amazon, said in a news release.